Deductions and allowances

A tax deduction or allowance (called ‘fradrag’ in Danish) is an amount you don’t pay tax on. You pay tax on your income automatically, but you are entitled to certain tax deductions and allowances, depending on your personal and financial situation. This reduces the tax you have to pay.

Depending on your situation, you may be entitled to different tax deductions and allowances in Denmark. 

An example of a tax deduction is the deduction for transport between home and work (‘kørselsfradrag’ in Danish): You are entitled to this deduction if you have more than 12 kilometres to work (a total of 24 kilometres to and from work a day). 

Another example of a tax allowance is the personal allowance (‘personfradrag’) that all citizens in Denmark automatically get. It means that you can earn a certain amount taxfree – and if you earn more than that, you then have to pay tax.

The Danish Tax Agency's deduction guide tells you which deductions and allowances may be relevant for you. Please note that the guide only applies when you are subject to full tax liability. Check out the guide at skat.dk:

• Guide: Which deductions are you entitled to?

You get some deductions and allowances automatically. Others, you have to enter on your tax assessment notice (årsopgørelse) yourself, such as:

• Household services
• Home improvement services
• Deduction for transport between home and work
• Shares and other securities
• Cryptocurrency
• Revenues from sharing economy activities
• Child allowance and tax (in Danish)
• Food and accommodation and double housekeeping
• Deductions for workwear, courses, etc.

Tax assessment notice (årsopgørelse)

• Check your tax assessment notice (årsopgørelse) in E-tax

Preliminary income assessment (forskudsopgørelse)

You should also enter your expected deductions in your preliminary income assessment (forskudsopgørelse), so you pay the correct amount of taxes each month:

• Change your preliminary income assessment

As a rule of thumb, the value of a deduction is approximately one third of the amount.

For example, if you have spent 10,000 DKK on household services, you get a tax refund of approximately 2,600 DKK. That means that you actually only paid 7,400 DKK for the household service.